Protect Yourself Against Tax-Related Identity Theft

Tax-related identity theft can feel overwhelming, but with the right knowledge and proactive steps, you can safeguard your information and recover quickly if you become a victim. This guide will walk you through what tax-related identity theft is, how to recognize the warning signs, and how to protect yourself.

What Is Tax-Related Identity Theft?

Tax-related identity theft happens when someone uses your Social Security number to file a fraudulent tax return and claim a refund. Unfortunately, many victims don’t realize it has happened until:

• They file their taxes and find a return has already been submitted using their SSN.

• They receive a notice from the IRS about suspicious activity.

  
  

Common Warning Signs

Be alert for these red flags that indicate tax-related identity theft:

• Multiple Tax Returns Filed: Your electronic return is rejected because your SSN was used on another return.

• Unexpected Tax Notices: You owe additional taxes, had your refund offset to pay debts, or face collection actions for a year you didn’t file a return.

• Unfamiliar Employers: IRS records show wages from an employer you’ve never worked for.

  
  

What to Do If You’re a Victim of Tax Identity Theft

If you suspect you’re a victim of tax-related identity theft, act quickly to resolve the issue and protect your information. Here’s how:

1. Continue Filing and Paying Taxes

Even if your electronic return is rejected, file a paper return to ensure you meet your tax obligations.

2. Respond to IRS Letters Immediately

Call the number provided in any correspondence from the IRS. Quick communication can help prevent further issues.

3. Submit an Identity Theft Affidavit (Form 14039)

If your e-filed return is rejected or if directed by the IRS, complete the IRS Identity Theft Affidavit:

• Online Submission: Use identitytheft.gov to file online.

• Mail Submission: Print and mail Form 14039 to the IRS.

  
  

You’ll receive a confirmation letter from the IRS within 30 days.

4. Report the Theft to the Federal Trade Commission (FTC)

Visit identitytheft.gov to report the theft and create a recovery plan.

5. Contact the IRS Identity Protection Specialized Unit

Call the IRS at (800) 908-4490 for additional assistance.

How to Protect Yourself from Tax-Related Identity Theft

Prevention is key when it comes to protecting yourself from identity theft. The IRS, state tax agencies, and the tax industry formed the Security Summit to combat tax-related identity theft, and you can take steps to safeguard your information too.

1. Secure Your Technology

• Use security software with a firewall and antivirus protection.

• Set strong, unique passwords for all accounts.

  
  

2. Recognize and Avoid Scams

• Be cautious of phishing emails, threatening calls, or texts from scammers posing as trusted organizations.

• Remember, the IRS will never contact you via email, text, or social media. Report suspicious IRS emails to phishing@irs.gov.

  
  

3. Protect Your Personal Information

• Don’t carry your Social Security card routinely.

• Keep tax records in a secure location, such as a locked file cabinet.

• Shred documents containing sensitive information before discarding them.

  
  

The IRS Is Here to Help

The good news is that tax-related identity theft cases have decreased since the Security Summit was formed in 2015. However, staying vigilant and taking proactive steps is still essential to protect your identity all year long.

Take Action Today

If you’re dealing with tax-related identity theft or want to learn more about preventing it, we’re here to help. Contact our team of tax professionals for guidance on recovering from identity theft or protecting your personal information.

Call us today at 1-855-826-0807 or visit Reliable Tax Relief for expert support.